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it's all ahead on today's first business. you're watching first business: financial news, analysis and today's investment ideas. good morning everyone, it's thursday, september 16th. and stocks are back in the green for 2010. traders are becoming a little more optimistic, but it really depends on that jobs report due out later today. beejal, it's not often we talk about medical stocks and fda approvals. but i have to mention arna pharmaceuticals only because it's really captured the attention of traders. take a look at the chalk and see the stock fell heavily this week after the fda, some members of the panel came out and said the company's diet drug may have some extreme issues that are not good for the public. well today there's going to be another vote. so there's going to be some data coming out from the fda on arna's diet pills. we'll see what they have to say and will it trim more from the stocks. thank you angie. and government mortgage
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finance agency's freddie mac and fannie mae have been trying to force banks to buy back $11 billion worth of bad loans that they made because it did not meet underwriting guidelines. well, this week agency officials say those banks have been stalling for more than three months. and first, let's head over to the cme group and join george tkaczuk of rmb group. george, we've got the s&p 500 up at resistance levels up for the s&p 500 around 1120. so how do you think this could play out, could we actually see a break out or not? i think it's very possible we can. what we week in august the market bottomed. since the market's been moving up really on a strong basis, the up days have been a stronger volume than the down days. we've haven't seen any significant selling days. and along with this we have the retail sector participating, it's come off its bottom. you got the financials participating, then the tech sector, software sector which really didn't correct much at
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all through this whole period during the summer. it's really leading the market. so this morning what you're going have is initial claims on the job as far in the u.s.. if those numbers come out greater than expected, that might be bad. and that combined with the level of the market right now, that may be a natural place for people to sell the market. but we'd be buying those dips. ok, are you concerned about the very low volume in the markets today? there is very low volumes in the markets today. that's probably due to all the moy still flowing into bond funds. that's at least the latest data we've seen is just tremendously flowing into bond funds and not coming back into the market. that's why we think if you're in the market now, most people start to get a little more appetite for risk. the bond market is starting to come down now and that money does start flowing into stock funds, you might be in pretty good place. ok, for now it's kind of just wait and see. because we have to see sustained closes above 1120. yes we do, but i think we can possibly get it. the nasdaq on wednesday quells a little above 2300. and that's really a good mark. again, we see a lot
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good stocks with a really solid fundamentals trading at the 52 week highs. and when you get this many stocks doing that, it's not a sign of a double-dip recession coming. and we think the market will continue to go higher. ok thanks very much, george tkaczuk of rmb group. wind and water are coming into play by manufacturing companies trying to save money. at the international manufacturing trade show we were given a glimpse at how the idea of energy efficiency is picking up steam. these water jets are powerful enough to cut through thick metal, stone and just about anything else you would think would be impossible to cut by mere water (and a little bit of sand). "we are finding out every day new things that we can cut as new materials are developed." flow interenational's water jet system has been around since the '70's. but as manufacturers become more focused on reducing costs, something as simple as tap water is being used now to create items that might surprise you.
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"787 boeing wings are cut on a water jet baby diapers are cut on a water jet baby carrots, chicken nuggets have seals in canals, balasitic glass. it's really extremely versatile." it's clear, this company has an interested in being green. "it's defintely a very green process. we use garnet abrasive and we recycle that as well. it's just tap water that we use and as long as you put in a filtration system and recycle that water you are good to go." with a backdrop of the windy city, the sandvik coromant company is playing up its products that go into building wind generation systems such as wind turbines. this year has brought in a whirlwind of business. "in the places that we supply to wind generation we've seen growth this year in sales of approximately 40%." that could increase as federal
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agencies have outlined plans for curbing government fossil fuels. the number of companies installing wind generation shot up to record high in 2009 and the industry shows no signs of losing steam. "so now we are up at a high level of installations, so even though the growth rate has flattened out we are still seeing demand." much of what happens next with energy efficiency will depend on congress. earlier this year the president called for reducing the use of electricity and fuel by 28% over the next 10 years. utility companies could face higher penalties and stiffer safety guidelines after last week's deadly pg&e pipeline explosion in a california neighborhood. the obama administration is proposing to increase penalties. the maximum fine for pipeline violations that involve deaths, injuries or major environmental harm would go from 1 million dollars to 2.5 million. the bill would also authorize 40 additional inspection
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personnel over 4 years. congress still needs to approve the measure. the new pipeline rules are no doubt being closely watched by the enbridge company. enbridge just fixed a leak yesterday in it's giant 6-a pipeline that runs from wisconsin to indiana. more than 6 thousand barrels of crude oil leaked through a small hole in the line 30 miles south of chicago last week. enbridge also owns has a 6-b line which ruptured near marshall, michigan earlier this summer spilling more than 1 million gallons of oil into a nearby creek and the kalamazoo river. on capital hill wednesday, congressmen blasted the company and federal agency which oversees the nation's pipeline system for the spills. an enbridge official told the congressional committee "the company could detect a leak on its pipelines "almost instantaneously." although reports say it took enbridge 18 hours to confirm the michigan problem. still to come... america's shrinking supply of water could turn into a crisis. more on that later. but first, how america's
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dependence on foreign oil partly lead to the great recession.
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woman: so here are the keys. congratulations! it's officially yours.
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i'm sure you'll have many happy years here. except for you. because you'll be gone three years from now. struck down by the same disease that got your father. so you won't be around for them. and sadly, it could have been detected early with a simple test. but you didn't have it. ok! who wan to check out the back yard? announcer: for a list of tests every man should have, go to would you believe there could be a link between our dependence on foreign oil and the housing crisis. that's just one of the revelations lewis reynolds brings to light in his book "america the prisoner". welcome to the show louis. so you have uncovered a through your research that proves for oil is
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the reason why we have today's economic troubles? how do you draw that make? it's one of many reasons, but is basically the story of follow the money. because every time americans feel up their gas tank at the gas station, and eventually that money goes somewhere. and a lot of cases is going eventually to mortgage backed securities, and other investments that help in flame of the housing crisis. and one of the numbers that you draw up here is for every $1 that americans spend on foreign oil, over 44 cent can be traced directly back to the purchase of u.s. assets by foreigners. that's correct. how did you come up with that? the statistics are all right there in the treasury department's publicly released data. it's the right there for you to see a go online and look yourself. it takes a little digging. but ultimately you can track the money. and between the treasury department data as well as publicly release data from opec,
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as well as other exporting nations, it becomes pretty obvious 44ยข of every dollar we spend on foreign oil ultimately comes back to us in our transfer of assets to foreigners overseas. and about half of that amount of money actually goes directly to u.s. treasury securities and securities of freddie mae and freddie mac. so how do you draw the link between this and the inflated housing bubble? the difference that's important to realize is if that money were not spent on foreign oil, it would have still been spent on energy, but it would have been spent on energy in the united states. domestically produced energy. americans that would have been receiving those funds spend their money differently than what overseas governments tend to spend on. so rather than buying mortgage- backed securities and treasury securities, individuals will ultimately be buying stocks,
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real estate and consumer driven assets in the u.s.. so foreign money was part of the big reason why we had a housing bubble. it is, in fact it drove liquidity into the housing sector that otherwise would not have been there. it depressed interest rates would help increase liquidity. and ultimately there's more credit available to individual investors than otherwise would have been based on the fundamentals of the market. ok, we know there's been talk for decades that we need to lower our dependence on foreign oil. and yet that seems to be going nowhere at this point. at the moment gas points that actually retrenching. thanks to the recession they have retrenched a little bit in recent months. however, ultimately the long term trend is unmistakable. demand in china for petroleum is growing 6% a year. we're not finding tremendous new resources. and our new discoveries of petroleum out there, but they're really just another offset the depletion
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existing reservoir. so what's the solution? the solution is ultimately alternative fuels. there are technologies out there that allow us to make fuels a very cheaply. and most americans out there don't realize what's available. the technologies that let us make from biomass and resources that are abundant in this country. fuel very inexpensive the about $1.25 a gallon is ultimately the cost. so we have alternatives there in great investment opportunities out there for americans in the long run. there is growth in demand in china that will be increasing prices. supply is not expanding, so we have a lot to look forward to in terms of increased prices. but there needs to be a greater commitment to these alternative energy is. absolutely there does. there are definite policies that need to come out congress to help protect alternative fuels and helped
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offered incentives to produce alternative fuels beyond what we're already doing. are you worry that major oil companies are going to block this effort usher mark well major oil companies make, but ultimately the oil companies could benefit from these technologies just as america could benefit from these technologies. the businesses will ultimately declined. it's the foreign exporters that have all of these resources, not the oil companies. so they need to look into what their future is going to be. in my book i actually examine with the oil companies and their money on what they should be spending from a shareholder's perspective. very good ideas, thank you very much. lewis reynolds author of the new book "america the prisoner". on our website, the governor of michigan talks about the state of the american auto industry and how a new battery factory is hiring workers. plus, hear from a woman who's taking an unusual hands on approach to commodities trading. and how to make a smoothyou can find these stories plus full shows if you missed any all on our website and straight ahead on the show.... the potential water crisis next. next.
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experts say america is heading toward a major water shortgage that could be devastating to the economy and there's an effort underway to avert the potential crisis. dr. peter gleick, president of the pacific institute is here with us. welcome to the show. so how serious is this situation? i think there's a growing serious water challenge in this nation and it takes a lot of different forms. we worry about water availability. we were about having enough water
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to do the things we want when we want to do them. what about water quality. we worry about what comes out of our taps and the quality of water in our rivers and streams. we're worried about long-term climate change and how that's going to affect storms and what availability. we were about a whole set of issues around water. we've never been very good about managing water in a sustainable way. and part of the effort that we're releasing this call to action is an effort to both raise awareness of the water problems, but also to point out there are really effective solutions available to us. and, will go over those in the second, but first i want to talk about what exactly is threatening our supply of fresh water? part of the problem is we get different amounts of water in different parts of the country at different times. those will live in the rest know that the west is relatively dry compared to the eastern part of
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the united states. we know we are subject to droughts and floods. sometimes we get too little water, sometimes we get too much. the population of the nation is growing very rapidly, but the water supply is not growing. we contaminates some of the water we have making it unusable. there are a whole series of availability and water quality challenges and different places at different times. but even parts of the country that used to think of themselves as water rich are facing water shortages. like alabama, georgia and florida in recent years have had both drought and growing competition over the limited water availability. and if is a water shortage, what is the impact of everyday life? are we looking at the price of water going up dramatically? well we worry about not having enough's water to grow the food we want. we worry about not having enough water to satisfy industrial demands for water, or water to call off power plants. we worry about not having the right
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amount of water or quality of water for our municipal supplies, for our residential use in our homes or our businesses. water quantity and water quality challenges exist. they're getting worse and worse over time and we better figure out how to deal with them. and do you think americans should pay it more for using water today? without a doubt in many parts of the country, we don't pay enough for the water we use. wheat often pay less in our homes to water than we pay for cable tv or hour cell phones or internet connection. or energy, and yet think about how important water is to us. we can pay a little more for water and have more reliable infrastructure. we cannot say for water, better quality water. i do acting properly pricing water is part of the solution. then, let's talk more about that. what are the p things people and companies can do to avoid this possible water shortage the good news is there are solutions out there. the call to action that the johnson foundation and a very diverse set of interests came together to produce suggest
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we better manage water more effectively at the right level. at the local level, at the state level and at the national level. there are federal agencies that do different things in different places and often don't talk together. so one of the recommendations is better joint management of our water resources. another recommendation is bring our water lost up to date. a lot of the laws that protect our water quality is 30 or 40 years old and need to be brought into the 21st century. another solution is finding more sources of supply, but we also need to manage the demand for water. we can do the things we want to do far less water we do today. we can grow more food with less water, flush our toilets with more effective fixtures. we can take showers that use less water. we can wash our clothes with less water. so there's a technological component to our solutions as well. ok thank you dr. for bringing this issue to light.
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dr. peter gleick is the president of the pacific institute. and still to come. matt shapiro takes a look at the charts and kraft foods after this break. it was more surreal than anything. you're under fire. you're getting blown up. there's definitely adrenaline. there was the explosion, and i remember just opening my eyes, and it got both of my legs. i had surgery after surgery, you know, i was on a lot of pain medicine. "what's going to happen next? and how long am i going to be here?" the wounded warrior project dropped off a backpack for me. and it had everything in there that i could possibly have needed at that time. peer visitors, people who have been where i had been before, said, "look, brother, "everything's going to be okay. "three months from now, or four months "from now, a year from now, you'll be fine." that type of thing was an invaluable service. to be honest, i don't know if i would be as well adjusted as i am now
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if it wasn't for them. to learn more, call... or visit
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kraft hit a new high for the year. let's bring in matt shapiro, president of mws capital to talk about the stock. good morning and thanks for coming back on the show.
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kraft hit another 52 week high yesterday. the big story was they reaffirmed earnings growth after that big acquisition they had with cadbury late last year that closed recently. so big 20 billion acquisition. you know warren buffett, it was very controversial. didn't like how much debt and stock was issued to pay for it. but at the big analyst meeting they had yesterday, they reaffirmed guidance and said that indeed the synergies, are going to be working. and in fact, they're growing quite strongly overseas, especially in emerging markets. so would you be a buyer of the stock? right now options market seems to think a pullback is do, may be below $31. what are your thoughts? well, there's been a lot of bearish sentiment out there in any big dow stocks. but think about it, kraft has a 3.7% dividend. that's almost better than the 30-year u.s. treasury. and with its latest report, we definitely have the financial capability of paying that dividend. so i believe a
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lot of the bearish sentiment can be out there. but however, you know these professional options traders play the the stock both ways. but it's a big holding of mine, and i would buy more. i think my price target for many analysts and myself is about $35. so you're a buyer and a holder. thank you very much. matt shapiro is president of mws capital, always nice to have you on the show matt. and that's all the time we have for today's show, thanks for watching. have a great day and we'll see you tomorrow.
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First Business
FOX September 16, 2010 4:30am-5:00am EDT

Changing Careers News/Business. (2010) A job-search expert discusses common mistakes people make when searching for work. New. (CC)

TOPIC FREQUENCY Matt Shapiro 3, Michigan 3, George Tkaczuk 2, Lewis Reynolds 2, Freddie Mac 2, S&p 2, Fda 2, Dr. Peter Gleick 2, China 2, Florida 1, Angie 1, Marshall 1, Opec 1, Enbridge 1, Obama Administration 1, Sandvik 1, Balasitic 1, Johnson 1, Indiana 1, Louis 1
Network FOX
Duration 00:30:00
Scanned in Annapolis, MD, USA
Source Comcast Cable
Tuner Channel 79 (555 MHz)
Video Codec mpeg2video
Audio Cocec ac3
Pixel width 704
Pixel height 480
Sponsor Internet Archive
Audio/Visual sound, color

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on 9/16/2010